Jan 30 2019

USDINR- Likely to test 72.50

USDINR:- USDINR, after hitting its recent peak at 71.52 (21 Jan 2019) has gone in a low volatile downward sloping range (from 71.52 to 70.95). The recent less volatile fall seems likely to be arrested after today’s (30 Jan 19) gap up open at 71.36 or in other words we can say the current candle opens above that narrow range (a sign of bulls to take charge). 50 day Exponential moving average along with a trend-line support – earlier ¬†which acted well as a strong support is now coming at 71.00 mark. Prices are trading above the moving averages, which itself is an indication of upward trend. Relative Strength Index (14 days) is hovering above 50 mark, which indicates the strength of bulls is still present.

Conclusion:- We are expecting USDINR to move towards 72.00-72.50 in coming future. A close below 70.95 will negate the above view.